If your business invoices clients (projects, hours, services) and also pays employees or contractors (salaries, hourly wages), then software that handles both payroll and billing/invoicing can save you lots of time.

It helps avoid errors, automates timesheet-to-invoice workflows, handles payroll tax/withholding (or contractor pay), and gives a unified view of labor costs vs billable income.

A good payroll-billing tool tracks time, links hours to clients/projects, creates invoices, handles payroll, and ideally syncs with accounting or bookkeeping for full financial clarity.

Below are top tools in 2025 that excel at payroll + billing (or payroll + client invoicing/time-billing) — what they do well, where they might struggle, and who they are best for.

1. Hubstaff

Hubstaff is a full-featured time-tracking, billing, and payroll tool — especially useful for distributed teams, freelancers, agencies, or companies billing clients per hour or project.

What it does

• Tracks time worked, even with activity monitoring, GPS/time-clock, and timesheets.
• Lets you convert tracked time into invoices for clients.
• Supports payroll — paying employees or contractors, calculating wages, and generating payment reports.
• Provides project cost tracking, timesheet export, and integrates labor cost with billing and project profitability.

Pros

• Great for companies that bill clients based on time or hourly work.
• Automates both client invoicing and employee/contractor payroll — no duplicate time entry.
• Works well for remote teams, freelancers, and agencies with flexible hours or multiple projects.
• Gives visibility into cost vs revenue per project (time billed vs time paid).

Cons

• May feel “metric-heavy” for teams that prefer trust-based time logging rather than tracked hours.
• Less suited for very complex payroll needs (tax-heavy, many benefits, multi-country payroll) — better for simpler or contract-based setups.

Takeaway

Choose Hubstaff if your business relies on billing clients by hours or project time AND you want to manage payroll for employees or contractors — especially good for agencies, consultants, freelance-heavy companies, or remote teams.

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2. TMetric

TMetric is a lighter-weight time tracking and billing-enabled software that works well for small to mid-sized teams, freelancers, or companies that want simple time-to-invoice workflows and basic payroll/billing support.

What it does

• Tracks time per project/task and records billable hours.
• Lets you generate invoices based on tracked hours or project rates.
• Offers exporting of timesheets for payroll or billing purposes — helpful when you pay hourly or per task.
• Can support basic billing workflows without heavy overhead.

Pros

• Simple and easy to use — good for teams that want minimal friction.
• Affordable and light — works for small businesses or small teams.
• Allows easy client billing from time logs, with invoice generation and exportable timesheets.

Cons

• Not a full-featured payroll engine — for complex payroll, taxes, benefits, you might need additional tools.
• Billing and payroll features are simpler than dedicated payroll or invoicing suites.

Takeaway

Pick TMetric if you just need simple, straightforward time tracking → client billing or contractor pay. It works well for small teams, freelancers, consultants, or companies with modest payroll needs.

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3. FreshBooks

FreshBooks is primarily known as invoicing and accounting software — but it also supports time tracking, expense tracking, invoicing, and can be used alongside payroll tools to manage billing & payments efficiently. It suits small businesses, freelancers, agencies, and service firms.

What it does

• Handles invoicing, time tracking for billable hours, expense tracking, and billing management.
• Lets you create and send professional invoices quickly and track payments.
• Works well for companies that provide services, bill clients frequently, and need clean invoicing + expense tracking workflows.
• Can integrate with payroll or contractor-payment modules to handle payouts.

Pros

• Very user-friendly and designed for small businesses with simple billing needs.
• Combines invoicing, time/expense tracking, and billing in one tool — good for freelancers or small agencies.
• Excellent for client-facing billing, recurring invoices, and simple financial workflows.

Cons

• Not a full payroll solution — may need separate payroll tools for salary/benefits, taxes, etc.
• Less suited for complex payroll scenarios (many employees, compliance, benefits, multi-country pay)

Takeaway

Use FreshBooks if your business primarily needs client invoicing, billing, and time/expense tracking, and you prefer a simple, easy-to-use system. It’s great for freelancers, small agencies, service providers, or consultancies.

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4. Harvest

Harvest is a time tracking and billing tool with good invoicing and expense features, ideal for agencies, freelancers, and small businesses that bill clients for time and want a lightweight, straightforward solution.

What it does

• Tracks time per project or task and logs billable hours.
• Converts logged hours into invoices automatically.
• Supports expense tracking, project-based billing, and simple invoicing workflows.
• Works well for project-based businesses, consulting firms, or small teams.

Pros

• Simple, intuitive interface suitable for small businesses or teams new to time-billing.
• Helps ensure clients are billed accurately for hours worked or projects.
• Enables quick invoicing and clear billing workflows without heavy accounting overhead.

Cons

• Not a payroll engine — you’ll need separate tools for salaries, taxes, and detailed payroll management.
• For larger teams or complex payroll needs, features may be too basic.

Takeaway

Harvest is a good choice if you care mostly about billing clients accurately based on hours/projects. It’s ideal for freelancers, small teams, and consultancies — less suited for larger operations needing full payroll capabilities.

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5. Combined Approach — Accounting + Payroll + Billing Suite (e.g. Sage / Accounting Tools + Payroll Module)

If you want both full payroll features and invoicing/billing, sometimes the best approach is using a comprehensive accounting or small-business finance suite that supports payroll + billing. These tend to work best for companies that handle both internal payroll and client billing with more traditional business accounting workflows.

What this approach gives you

• Payroll for employees/contractors with tax handling, pay stubs, and wage management.
• Client invoicing and billing, expense tracking, and accounting integration.
• Unified financial overview — revenue, expenses, payroll costs, invoices, cash flow.
• Better for companies with mixed needs: payroll, billing, accounting, bookkeeping.

Pros

• Covers all bases: employee pay, contractor billing, client invoicing, accounting records.
• Good for small-to-medium businesses with mixed revenue streams (products, services, projects).
• Reduces need to juggle multiple tools — everything centralized.

Cons

• More complex than simple time-billing tools or payroll-only tools.
• May cost more and require more setup or bookkeeping knowledge.
• For very small teams the overhead may be more than needed.

Takeaway

Use a combined payroll + billing/accounting suite when you run a business that needs to pay employees/contractors and bill clients — and want a unified financial view. Good for growing small-to-medium businesses with mixed revenue and expense streams.

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How to Choose Based on Your Business Type

Business Type / Need	Recommended Solution Type
Freelancers or small teams billing hours to clients	TMetric, Harvest, FreshBooks
Agencies / consultancies billing clients + paying contractors	Hubstaff, Harvest, combined billing + payroll suite
Companies needing internal payroll + client invoicing + accounting	Combined payroll + billing/accounting suite
Small businesses with simple payroll (salaries) + occasional invoices	FreshBooks + separate payroll tool or combined suite
Remote teams, hourly work, flexible contracts	Hubstaff, TMetric (time tracking + billing)

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Final Thoughts

“Payroll billing software” isn’t a single feature — it’s a mix of time tracking, billing/invoicing, payroll processing, and accounting. The best tool for you depends on your business model:

• If you bill clients for hours/projects and sometimes pay freelancers/contractors, prioritize a tool that tracks time + invoices + handles pay — e.g. Hubstaff or TMetric.
• If you mostly handle client invoicing, prefer simplicity — FreshBooks or Harvest shine.
• If you run a business with both employee payroll and client billing, a full accounting-plus-payroll suite is smartest.
• If you just want minimal overhead and ease, pick the lightest tool that covers your core needs.